Financial Performance - Net income for Q1 2024 was $30,606,000, an increase of $2,514,000 or 8.9% compared to Q1 2023[10] - Net income for the first quarter of 2024 was $30.606 million, an increase from $28.092 million in the same period of 2023, representing a growth of 8.9%[20] - Total noninterest income for Q1 2024 was $23,373,000, up from $22,681,000 in Q1 2023, marking a rise of 3.1%[20] - Total interest income for Q1 2024 was $130,632,000, an increase of $30,276,000 or 30.1% compared to Q1 2023[10] - Net interest income for Q1 2024 was $96,919,000, up from $92,642,000 in Q1 2023, reflecting a $4,277,000 increase[10] - Total adjusted income, a non-GAAP measure, rose to $120,292 thousand for the quarter, up 4.1% from $115,322 thousand year-over-year[26] Assets and Liabilities - Total assets increased by $280,701 thousand from December 31, 2023, to $6,875,592 thousand, and by $801,501 thousand from March 31, 2023[4] - Total assets grew to $7,219,572,000 in Q1 2024, compared to $6,213,041,000 in Q1 2023, marking a year-over-year increase of 16.2%[10] - Total deposits grew by $367,486 thousand from December 31, 2023, to $5,420,649 thousand, and by $620,981 thousand from March 31, 2023[4] - Total interest-bearing liabilities rose to $4,643,647 thousand, an increase of $1,532,294 thousand compared to the same period last year[5] - The average balance of interest-earning assets increased to $6,641,448,000 in Q1 2024 from $5,679,926,000 in Q1 2023, reflecting a growth of 16.9%[10] Loans and Credit Losses - Total loans for the company decreased to $5,224,292, down $15,569 from the previous quarter and up $450,058 from the same quarter last year[13] - The allowance for credit losses on loans increased by $26,572 thousand from December 31, 2023, to $108,702 thousand, and by $12,581 thousand from March 31, 2023[4] - Provision for credit losses increased to $30,622,000 in Q1 2024 from $26,766,000 in Q1 2023, representing a $3,856,000 increase[10] - The allowance for credit losses to total loans ratio increased to 2.08% from 1.57% as of March 31, 2023, reflecting a rise of 0.51 percentage points[15] - The company reported a decrease in automobile loans to $2,054, down $610 from the previous quarter and down $3,213 year-over-year[13] Stockholders' Equity - Stockholders' equity increased by $22,827 thousand from December 31, 2023, to $935,583 thousand, and by $53,381 thousand from March 31, 2023[4] - Total stockholders' equity increased to $935,583 thousand as of March 31, 2024, up from $882,202 thousand a year earlier, representing a growth of 6.04%[25] - Tangible stockholders' equity reached $885,663 thousand as of March 31, 2024, up from $829,365 thousand a year earlier, marking a growth of 6.8%[25] - Book value per share rose to $48.20, an increase of $3.55 or 7.95% from $44.65 a year ago[12] Efficiency and Ratios - The efficiency ratio improved to 42% from 44% year-over-year, indicating better operational efficiency[12] - The net interest margin decreased to 5.87% in Q1 2024 from 6.52% in Q1 2023[10] - The net interest margin for Q1 2024 was 5.87%, down from 6.52% in Q1 2023, reflecting a decrease of 10%[20] - Return on average assets improved to 1.70% compared to 1.81% in the previous year, reflecting a decrease of 0.11%[12] Employee and Operational Metrics - Total employees at the end of the period decreased to 1,011, down by 20 from 1,031 a year ago[12] - Number of full-service banking centers increased to 47, up by 3 from 44 a year ago[12] Nonperforming Assets - As of March 31, 2024, total nonperforming assets increased to $22,859,000 from $18,139,000 a year earlier, representing a change of $4,720,000 or 26.0%[15] - Total nonperforming loans rose to $21,374,000, up from $16,610,000, marking an increase of $4,764,000 or 28.7% year-over-year[15] - The ratio of nonperforming loans to total loans was 0.41% as of March 31, 2024, compared to 0.35% a year earlier, reflecting an increase of 0.06 percentage points[15]

Financial Overview - As of December 31, 2023, Republic Bancorp, Inc. had total assets of $6.6 billion, total deposits of $5.1 billion, and total stockholders' equity of $913 million[21]. - Republic ranked as the second largest Kentucky-based financial holding company based on total assets as of December 31, 2023[21]. - As of December 31, 2023, the Company had 1,019 full-time equivalent employees, with no employees under collective bargaining agreements[81]. - The Company estimates that 35% of its total deposits as of December 31, 2023, were uninsured, which may increase liquidity risk[168]. Lending Activities - The Bank's principal lending activities include retail mortgage lending, commercial lending, and consumer lending, with a focus on loans secured by owner-occupied residential real estate[26][31][44]. - The targeted credit size for commercial and industrial (C&I) lending relationships is typically between $1 million and $10 million, with larger targets for corporate banking[32]. - The Bank's commercial real estate (CRE) division focuses on large projects typically ranging from $5 million to $25 million, with an emphasis on low credit risk[35]. - The Bank is an SBA Preferred Lending Partner, allowing it to expedite the underwriting and approval of SBA loans up to $3 million[39]. - The Bank's mortgage division includes a Retail Channel and Consumer Direct Channel, originating single-family residential loans and home equity lines of credit (HELOCs)[26]. - Marine lending, initiated in 2023, offers loans ranging from $100,000 to $1,000,000, requiring higher creditworthiness than typical consumer loans[47]. - The Bank's Correspondent Lending channel purchased a block of single-family, first-lien mortgage loans during the second and third quarters of 2023, with premiums amortized into interest income over the expected life of the loans[51]. - The Bank's Private Banking division provides tailored financial products and services to high-net-worth individuals, leveraging extensive banking experience[49]. - The Bank offers two line-of-credit products, LOC I since 2014 and LOC II since January 2021, targeting generally subprime borrowers[77]. - The RCS installment loan product has terms ranging from 12 to 60 months, with all loan balances currently held for sale on the Bank's balance sheet[78]. Business Segments - The Company is divided into six reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, RPS, and RCS, with the first three considered "Core Banking" operations[24]. - The Republic Payment Solutions segment includes prepaid and debit solutions, with interchange revenue from prepaid card transactions reported as noninterest income[73]. - The Republic Credit Solutions segment focuses on unsecured, small dollar consumer loans, with a significant portion of clients considered subprime or near-prime borrowers[75]. Growth and Expansion - The Company has plans for future growth and expansion, focusing on enhancing its lending capabilities and market presence[17]. - The Bank's acquisition strategy aims to selectively grow its franchise alongside organic growth strategies[53]. Competition and Market Risks - The Bank faces intense competition from various financial institutions, including local and regional banks, credit unions, and fintech companies[86]. - The Bank's competitors may have greater resources and established client bases, leading to potential competitive disadvantages[87]. - The prepaid card industry is experiencing increasing competition from various companies and large retailers integrating financial services[92]. - The small-dollar consumer loan industry is highly competitive, with various competitors including payday lenders and fintech companies[93]. - Recent bank failures have negatively impacted customer confidence in regional banks, increasing competition for deposits and raising funding costs[166]. Regulatory Environment - Regulatory changes, such as the Dodd-Frank Act and the Economic Growth, Regulatory Relief and Consumer Protection Act, impact the Company's operations and regulatory requirements[104]. - The Company is required to obtain prior approval from the FRB for mergers or acquisitions that would result in owning more than 5% of any class of voting shares of a bank[106]. - The Company is classified as a Financial Holding Company (FHC), allowing it to engage in a broader range of financial activities compared to a Bank Holding Company (BHC)[108]. - To maintain FHC status, the Company must remain well-capitalized and well-managed, with a "Satisfactory" rating under the CRA[109]. - The Bank received an "Outstanding" CRA Performance Evaluation in March 2023, indicating strong compliance with community credit needs[127]. - The Company must comply with various federal and state consumer protection laws, including the Fair Credit Reporting Act and the Truth in Lending Act[123]. - The Company is subject to anti-money laundering laws, which require robust compliance programs to avoid significant penalties[121]. - The Company has implemented a comprehensive information security program to safeguard customer information and comply with regulatory requirements[128]. Financial Performance and Risks - The Bank's earnings are significantly influenced by the difference between interest earned on loans and investments and interest paid on deposits[151]. - Future changes in laws and regulations affecting the Company's operations are unpredictable and could impact profitability[155]. - The Company has adopted a Responsible Compensation and Sales Practices Program to comply with interagency guidance on incentive and executive compensation[150]. - Mortgage Banking revenue is expected to continue declining due to low mortgage demand resulting from an elevated interest rate environment[174]. - The Federal Open Market Committee (FOMC) has raised the Federal Funds Target Rate multiple times, contributing to elevated mortgage rates and low refinance activity throughout 2023[171]. - The Company may face increased funding costs if it loses large deposit relationships, as it would need to rely on more expensive funding sources[165]. - The Bank's net interest margin may be adversely affected by an inversion of the interest rate yield curve, which could occur if short-term rates rise above long-term rates[163]. - The Company is subject to significant credit risks associated with Refund Anticipation Loans (RAs) and Earned Refund Anticipation Loans (ERAs), which could materially impact financial results if collection rates decline[176][180]. - The Warehouse Lending business faces risks from intense competition and declining mortgage demand, which could lead to decreased earnings[172]. - The Company has traditionally relied on client deposits, with approximately 6% of deposits concentrated with the top 20 depositors, making it vulnerable to funding disruptions[164]. - Changes in the legal and regulatory environment may necessitate management's revisions to product parameters, potentially impacting performance negatively[183]. - The Bank's loan portfolio is at risk due to potential inaccuracies in borrower information, which could lead to additional charge-offs adversely affecting financial results[190]. - Approximately 34% of the Bank's portfolio is secured by residential real estate and another 34% by commercial real estate, both heavily reliant on third-party appraisals[191]. - The Bank's financial condition could be negatively impacted by environmental liabilities associated with properties it owns or forecloses on[192]. - The Bank's revenues and earnings are highly concentrated in line-of-credit products, and any discontinuation or significant change in these products would materially affect financial results[196]. - The Bank is highly dependent on programs administered by Freddie Mac and Fannie Mae, and changes in these programs could adversely affect its business[199]. - Prepayment of loans by clients may reduce the Bank's interest income, negatively impacting financial results[203]. Cybersecurity and Operational Risks - The Company faces risks related to cybersecurity threats, which could result in substantial costs and negative consequences if successful attacks occur[207]. - The Company relies heavily on third-party service providers, and any difficulties they experience could interrupt operations and adversely impact business[206]. - New lines of business or products may introduce additional risks, and failure to manage these risks could materially affect the Company's financial condition[211]. - The Bank may face goodwill impairment, which could negatively impact earnings if the fair value of a reporting unit falls below its carrying amount[212]. - The annual goodwill impairment test was conducted as of September 30, 2023, and incorrect management judgment could lead to a significant write-down of goodwill[213]. - The Bank's RPG products pose substantial legal and regulatory risks, with potential material negative impacts on earnings if compliance is not maintained[214]. - Non-compliance with statutory and regulatory requirements could expose the Bank to civil penalties and litigation risks, affecting its financial performance[214]. - Regulatory actions or litigation regarding RPG products could necessitate substantial alterations or discontinuation, leading to a material negative impact on earnings[214].

Business Segments and Operations - As of September 30, 2023, Republic Bancorp operates through five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS[233]. - The Bank has 46 banking centers primarily located in Kentucky, with significant operations in Metropolitan Louisville[234]. - The Bank's principal lending activities include retail mortgage lending, commercial lending, and consumer lending, with loans ranging from $200,000 to $4,000,000 for aircraft loans[235][242]. - The Bank's mortgage banking activities involve originating and selling single-family, first-lien residential real estate loans into the secondary market, primarily to FHLMC and FNMA[250]. - The Bank's acquisition strategy aims to selectively grow its franchise alongside organic growth strategies[247]. - The Company plans to dissolve its insurance subsidiary, Republic Insurance Services, Inc., with the dissolution expected in Q4 2023[218]. Financial Performance - Total net income for Q3 2023 was $21.6 million, an increase of $1.7 million compared to Q3 2022[271]. - Diluted EPS rose to $1.10 in Q3 2023 from $1.01 in Q3 2022[271]. - Net income increased by $2.6 million, or 276%, for Q3 2023 compared to Q3 2022[282]. - Total Company net income for the first nine months of 2023 was $70.7 million, a decrease of $1.9 million, or 3%, from the same period in 2022[351]. - Net income increased by $10.5 million, or 43%, for the first nine months of 2023 compared to the same period in 2022[353]. Income and Expenses - Net interest income increased by $847,000, or 2%, in Q3 2023 compared to Q3 2022[275]. - Noninterest income grew by $427,000, or 5%, in Q3 2023 compared to the same period in 2022[275]. - Mortgage banking income decreased by $302,000, or 26%, in Q3 2023 compared to Q3 2022[276]. - Noninterest income decreased by $19.2 million for the first nine months of 2023 compared to the same period in 2022[357]. - Noninterest expense for the Company increased by $1.9 million, or 4%, in Q3 2023 compared to Q3 2022[345]. Credit Losses and Provisions - The adequacy of the Allowance for Credit Losses (ACLL) is evaluated monthly, with significant reliance on historical loss rates and economic forecasts[228][230]. - The provision for credit losses was a net charge of $1.6 million in Q3 2023 compared to a net credit of $753,000 in Q3 2022[275]. - The total company provision was a net charge of $36.6 million for the first nine months of 2023, compared to a net charge of $14.5 million for the same period in 2022[391]. - The Traditional Banking segment's provision was a net charge of $6.4 million for the first nine months of 2023, with an allowance for credit losses (ACLL) of 1.27% as of September 30, 2023[392]. Loan and Deposit Growth - Total Traditional Bank loans increased by $642 million, or 17%, during the first nine months of 2023[353]. - Total Traditional Bank deposits increased by $254 million to $4.3 billion as of September 30, 2023[353]. - The Traditional Bank's average loans grew from $3.7 billion with a yield of 4.23% in Q3 2022 to $4.4 billion with a yield of 5.23% in Q3 2023[294]. Warehouse and Mortgage Banking - Average committed Warehouse lines decreased to $1.0 billion in Q3 2023 from $1.3 billion in Q3 2022[275]. - The Warehouse segment's net interest income decreased by $544,000, or 18%, from Q3 2022 to Q3 2023[298]. - The Bank's mortgage warehouse lines of credit provide short-term, revolving credit facilities to mortgage bankers, with loans typically remaining on the line for an average of 15 to 30 days[248]. Economic Conditions and Future Outlook - The Company anticipates potential impacts from inflation and economic conditions on its operations and financial performance[221]. - The incurred loss rate for RAs associated with the 2023 tax filing season was 3.79%, up from 2.87% for the same period in 2022[322]. Tax Refund Solutions (TRS) Performance - The Tax Refund Solutions (TRS) segment recorded a net charge to the Provision of $19.6 million in the first nine months of 2023, up from $7.0 million in the same period of 2022[397]. - TRS's charge to the Provision for Refund Advances (RAs) was $21.6 million, or 2.92% of $737 million in RAs originated during the first nine months of 2022[398]. - Net interest income within the Tax Refund Solutions (TRS) segment increased by $21.5 million from the first nine months of 2022 to the first nine months of 2023, driven by higher income from prepaid card products and tax-related credit products[375].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 or ◻ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) Kentucky 61-0862051 (State or other jurisdiction of incorporation or orga ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ◻ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) Kentucky 61-0862051 (State or other jurisdiction of incorporation or org ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Kentucky 61-0862051 (State or other jurisdiction of (I.R.S. Employer Identification No.) 601 West Market Street, Louisville, Kentucky 40202 (A ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or ◻ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) Kentucky 61-0862051 (State of other jurisdiction of incorporation or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 or ◻ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) Kentucky 61-0862051 (State of other jurisdiction of incorporation or orga ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 or ◻ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) | Title of each class | | Name of each exchange on which | | --- | --- | ...

(Exact name of registrant as specified in its charter) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. incorporation or organization) Kentucky 61-0862051 (State or other jurisdiction of (I.R.S. Employer Identification No.) 601 West Market Street, Louisville, Kentucky 40202 (A ...